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To: delta7
Russia is spending down cash reserves to finance an expansion of the domestic military economy in order to continue her war against Ukraine. That adds to Russia's nominal economy by increased domestic spending but does so at the expense of Russia's civilian life and future prospects.

Think of it this way. Suppose that you have been obnoxious and menacing toward your neighbors and they are now dangerously hostile against you. You therefore tap your savings to install a state of the art security system, armor up your house, and buy a significant array of firearms and get the training and practice to use them.

If you measure your prosperity by how much you are spending, which is what GDP accounting mostly does, you have become more prosperous. Of course, by broader measures, you are worse off. You are at odds with and fearful of your neighbors, and your savings are badly depleted by spending on personal security instead of direct benefit to your standard of living and enjoyment of life.

Similarly, due to the way that GDP is measured, the IMF projects that Ukraine's economy will grow by 3.2 per cent in 2023. This is due to foreign support that allows for increased domestic spending in Ukraine, not because life in Ukraine is better.

23 posted on 04/18/2024 8:07:06 AM PDT by Rockingham (`)
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To: Rockingham

the IMF projects that Ukraine’s economy will grow by 3.2 per cent in 2023.
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IMF? Laughable, had me laughing for minutes. Sorry, not going to happen with a country whose population has fled, economy in ruins, manufacturing gone, in ruins, 1 $$$ Trillion in estimated rebuilding costs, unpayable debt increasing.

Anyone with common sense can see the IMF “ projection” is Hopium…I don’t believe in Unicorns.


27 posted on 04/18/2024 8:44:45 AM PDT by delta7
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